Analysts' expectations compiled by Bloomberg show that the five largest U.S. banks on Wall Street are collectively projected to generate nearly $19 billion in equity trading revenue in the third quarter, with Goldman Sachs leading at $5.1 billion. In contrast, fixed income trading is facing pressure, with revenue expected to fall to its lowest level this year, below the over $21 billion recorded in the second quarter. The M&A market is also showing signs of cooling.

Analysts noted that almost all banks were winners in the first half of the year, but the performance gap between banks is expected to widen further this quarter. Additionally, market concerns that AI-driven cash optimization tools could accelerate deposit outflows and further drag down bank stock performance exist, though some analysts believe these concerns are overblown. Goldman Sachs is set to be the first to report earnings next Tuesday.